HomeMy WebLinkAbout02.27.2004• •
COUNCIL WORK SESSION
February 27, 2004
3:00 p.m.
Council Chambers
Members present: Mayor Hurley, Cole, Greenwood, Clark, Schmitt, Gunderson, Welper,
Kincaid.
Moved by Welper, seconded by Clark that the Agenda, as proposed, be approved. Ayes: Six.
Absent: Kincaid. Motion carried.
The purpose of the work session was to review the proposed FYE2005 Budget.
Kincaid now present at 3:02 p.m.
Mayor Hurley presented his proposed cuts to the General Fund totaling $634,673. Mayor Hurley
stated he went through each general fund department line item by line item and came up with
this reduction. Mayor Hurley reviewed his cuts to the following departments: Airport, Building
Inspection, Facilities Maintenance, Central Garage, Cultural & Arts, Fire Rescue, Human
Resources, Human Rights, Leisure Services, Mayor's office, City Council, Met Transit, Youth
Initiative, KBBG, Fairview Cemetery, INRCOG, City Attorney, MIS, Planning and Police.
Mayor Hurley distributed copies of the Budget Information Bulletin for Fiscal Year 2004-05,
published by the Iowa League of Cities.
Mayor Hurley distributed a copy of 2003/2004 tax rates of the top 20 cities in the State of Iowa
as reported by the Iowa Department of Management. Mayor Hurley reported that Waterloo has
the second highest tax rate for FY04.
Michelle Weidner, Chief Financial Officer, reported she made minor corrects to the FYE2005
Budget presented on Monday. Ms. Weidner stated that an additional $40,000 was added to the
Mobile Home, which reduced the unfunded FYE05 Budget to $987,177. Ms. Weidner stated
that if the city does not get the full property tax credit from the State of Iowa, we will be short
another $1.4 million.,
Ms. Weidner reviewed a letter to Mayor Hurley and Council Members regarding the FYE05
Published Budget Estimate. Ms. Weidner reported that the total published levy rate was
increased from $18.93402 as presented at the February 23, 2004 work session to $19.06902 to
reflect the possible addition of a separate levy for support of the Five Sullivan Brothers
Convention Center. The separate levy would bring the city about $238,000.
Mayor Hurley reviewed his list of additional FY05 General Fund Cut Ideas and suggested next
level. The additional cuts were in no particular order and no probability assumed.
Councilperson Welper stated that the Police and Fire Departments budget for part time and time
and a half because they have to have a certain number of employees on call. Councilperson
Welper stated it is understanding that Fire Chief DeBerg is calling back to cover all the shifts.
Mayor Hurley stated that he wants to save people and continue current programs and services.
The proposed cuts could slow down response time. Mayor Hurley stated that the bulk of the cuts
are personnel costs.
Ms. Weidner stated if the council cuts $987,000 from the proposed budget, the levy would be
$18.93 or 5.6 percent increase for property owners and 17.2 for commercial property.
Tom Jennings, Police Chief, stated that the department's strength is at 119 officers, but we are
only paying for 117 because two officers are currently on military leave. Chief Jennings stated
that four officers will be retiring by July 7 and one more will retire in December. Councilperson
Welper asked about the SRO Program and how serious it would be if we remove the DARE
officers from the school. Chief Jennings responded that one way or another the Police
Department will respond to the schools. Chief Jennings reported that the Waterloo Schools pay
Council Work Session
February 27, 2004
Page 2
$140,000 using federal funding and a grant pays for one officer. Chief Jennings stated if the city
doesn't continue the program, officers would have to be called from the street to answer calls
from the schools, especially at the high school level. Ms. Weidner reported that if we don't
accept the $140,000 from the Waterloo Schools, we would have to cut 3.9 officers.
Councilperson Greenwood stated he has a real concern for the commercial side because of the 17
percent increase in commercial property. Councilperson Greenwood noted that compared to
other cities we are at the top of the taxing scale, and yet we still can't pay for everything.
Councilperson Gunderson stated that the City of Cedar Falls and other cities generate funds from
their utility systems and the cities gain income from them.
Councilperson Greenwood stated we have water, sewer and garbage enterprise funds and collect
revenue from ambulance fees. Councilperson Greenwood stated that when we have enterprise
funds, he does not see a problem with throwing money back into the general fund rather than
raising taxes. Councilperson Greenwood stated we could increase garbage and sewer rates and
still be in the market place price, and those fees could be moved to the general fund, and he is
comfortable with that. Mayor Hurley responded that the Water Works does not belong to the
city, and the initial budget for Waste Management shows the sewer fund could be looking for
support from the general fund.
Councilperson Welper stated that in 1970, the city's population was about 76,000 people.
Waterloo was booming, then the embargo hit, and people left town. Councilperson Welper
stated we still have to provide the same services and have the same costs but less revenues.
Mayor Hurley noted that he has informed Dr. Dewitt Jones that the city would be reducing the
amount funded for the Jr. ROTC program from $30,000 to $15,000. Councilperson Gunderson
stated he would support cutting the Jr. ROTC program altogether as the program benefits the
schools and military and is outside the city's responsibilities.
Regarding using the 5 Sullivan Brothers levy, Councilpersons Welper, Gunderson and Cole
agreed.
Regarding freezing salaries for non -bargaining employees, Councilperson Gunderson stated he
could not support the freeze because when it happened in the 80s employee morale was terrible
and union personnel made more than their supervisors. Councilperson Cole stated she could not
support a freeze of salaries of non -bargaining employees.
Councilperson Clark asked if the city should continue support of KBBG as there is another
minority station in town that will probably ask for funding. Councilperson Kincaid disagreed
stating it is the line of communication for the 4th Ward. Councilperson Kincaid stated that the
Mayor, Police Chief and Neighborhood Services have shows on KBBG. Councilperson Clark
responded that he knows we need it.
Councilperson Schmitt asked if the $88,000 budgeted for time and a half in the Fire Department
would go away with the closing of a station. Chief DeBerg responded that about one-half of that
amount is for holiday pay. Chief DeBerg stated that if a station is closed and the needs are
reduced, we could see a reduction in time and a half. Chief DeBerg reported he is down 5
firefighters with the state reduction and 8 within the FY04 Budget. Chief DeBerg stated his
authorized strength will be down by 5 by March. Chief DeBerg reported he is using $4,500 to
$5,000 per week in overtime costs to keep the stations open. Chief DeBerg stated he has about
ten weeks of overtime remaining in the FY04 Budget.
Councilperson Welper stated no one is advocating closing a fire station, but what happened when
the Ansborough Avenue station was closed. Chief DeBerg responded that when the station was
closed, the response time took longer, and there was only one engine available to respond if there
were multiple calls. Chief DeBerg stated the station closed in 1993. In 1994 and 1995 with the
station closed, there were 116 uniform firemen. Today, including the medical supervisor there
are 107 personnel.
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Council Work Session
February 27, 2004
Page 3
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Councilperson Cole asked if we don't increase taxes, what services do we cut. Councilperson
Cole stated she believes what it will ultimately come down to is what services to cut. Maybe it
has come time to lower expectation of what government provides. Councilperson Cole stated we
are looking at reducing the proposed budget $2.4 million and it will probably mean services and
people.
Mayor Hurley encouraged department heads to think in terms of enterprise.
Councilperson Welper stated that people tell him thank you for the job the council is doing, and
they are glad they are not sitting on the council. Mayor Hurley stated that the largest sentiment
he hears is that citizens can't take it anymore.
Councilperson Clark stated if we find $900,000 in the proposed FY05 Budget, he does not want
to continue to look for $1.4 million that the state might take away in property tax credit.
Councilperson Gunderson stated that all businesses look to grow and pay bills. The city is
getting expenses passed on to us, and we need to pass those expenses onto the people. Citizens
receive raises through Social Security and pensions. The state passes reductions to us and we
have to make it up
Clark now absent at 4:06 p.m.
The council set up the following meetings to discuss the budget:
March 1, 2004 at 3:00 p.m.
March 2, 2004 at 6:00 p.m.
March 4, 2004 at 8:30 a.m.
With no further business before the council, it was moved by Welper, seconded by Gunderson
that the meeting be adjourned at 4:12 p.m. Ayes: Six. Absent: Clark. Motion carried.
Nancy Eckert
City Clerk